THE INSIDER
The Insider
by

Selling by directors in Hong Kong market surges

PUBLISHED : Sunday, 01 November, 2015, 4:33pm
UPDATED : Monday, 16 January, 2017, 10:28am

The buying fell while the selling among directors surged based on filings on the Exchange in the last week of October. A total of 26 companies recorded 147 purchases worth HK$341 million versus 11 firms with 56 disposals worth HK$124 million.

The number of companies on the buying side was sharply down from the previous week’s 4-day total of 34 firms. The number of purchases, on the other hand, was slightly up from the previous week’s 140 acquisitions. Despite the low number of companies last week, the buy value was sharply up from the previous week’s purchases worth HK$189 million. The sales, on the other hand, were sharply up from the previous week’s 6 firms, 21 disposals and HK$7.7 million.

With the surge in the selling last week, the focus turned to sellers with key insider sales in Up Energy Development, PAX Global Technology, China Hongqiao Group and Techtronic Industries.

Chairman & CEO Qin Jun recorded his first trades in coal mining firm Up Energy Development since July 2014 with 26.4 million shares sold on October 22 at HK 42.6 cents each. The trades reduced his holdings to 4.766 billion shares or 105.02 per cent of the issued capital (This was the equity interest that was stated in the HKEX filing which exceeds the private shareholder limit of 75 per cent).

The disposals were made on the back of the 58 per cent rebound in the share price since September from HK 27 cents. He previously sold 3 million shares in July 2014 at HK 90 cents each. Prior to his disposals since 2014, Mr. Qin acquired 24.15 million shares from April to July 2013 at an average of HK 49.9 cents each and sold 463,000 shares in October 2011 at HK$1.70 each. The counter closed at HK 53 cents on Friday.

Chairman Nie Guo Ming unloaded shares in electronic fund transfer point-of-sale terminal solutions provider PAX Global Technology at higher than his acquisition price in August with 4.2 million shares sold from October 20 to 22 at an average of HK$9.72 each.

The trades reduced his holdings by 53 per cent to 3.700 million shares or 0.33 per cent of the issued capital. The disposals were made on the back of the 42 per cent rebound in the share price since September from HK$6.83. He previously acquired 200,000 shares on August 21 at HK$6.92 each.

Prior to his trades this year, the Chairman sold 323,000 shares in September 2014 at HK$8.20 each and 2 million shares in March 2014 at HK$4.35 each. Also positive this year is CEO Lu Jie with 200,000 shares purchased from August 12 to 21 at HK$7.93 each, which boosted his stake to 10.400 million shares or 0.94 per cent. He previously acquired 100,000 shares on June 5 at HK$11.27 each and 100,000 shares in March 2014 at HK$3.87 each. The stock closed at HK$10.18 on Friday.

CEO Zhang Bo recorded his first sale in aluminium products manufacturer China Hongqiao Group since his appointment to the Board in January 2011 with 2.2 million shares sold on October 22 at HK$4.19 each. The trade reduced his holdings by 24 per cent to 6.870 million shares or 0.11 per cent of the issued capital. The sale was made at a profit based on the 2.2 million shares that he acquired on September 30 at HK$3.61 each.

Prior to that purchase, Mr. Zhang acquired an initial 6.870 million shares from September 2 to 8 at HK$3.42 each. The transactions by the CEO since September are the first trades by a director of the Company since the stock was listed in March 2011. The CEO’s trade prices were lower than the IPO price of HK$8.30. The stock closed at HK$4.05 on Friday.

Independent Non-Executive Director Christopher Patrick Langley resumed selling shares of rechargeable tools manufacturer Techtronic Industries at a higher price with 50,000 shares sold from October 20 to 22 at HK$28.65 each.

The trades reduced his holdings by 11 per cent to 400,000 shares or 0.02 per cent of the issued capital. The disposals were made on the back of the 14 per cent rebound in the share price since June from HK$25.15. He previously sold 150,000 shares from April 8 to 9 at HK$26.19 each and 50,000 shares from January 8 to 9 at HK$25.14 each.

Prior to his disposals this year, Mr. Langley sold 750,000 shares from April to December 2014 at an average of HK$25.26 each, 200,000 shares in April 2013 at HK$18.30 each and 300,000 shares in September 2012 via options-related sale at HK$13.76 each. Prior to his sales since 2012, the director acquired 400,000 shares from September to October 2011 at an average of HK$5.29 each. The stock closed at HK$28.45 on Friday.